Tax on bonus shares

Tax queries 156 views 2 replies
The Bonus shares issued are declared as Dividend, Am I right here? Do I need to show the details of Bonus shares in ITR as Short Term Capital Gains or Long Term Capital Gains?
Replies (2)
Bonus shares are only to be treated as bonus shares and not dividend as per my undwrstanding. There is no tax liability when bonus shares are issued by the company. It only increases the number of shares and decreases the face value of the shares but the cost price remains the same.
bonus shares are issued by the company in lieu of dividend. the count of bonus shares get added to your portfolio. if it is held for more than 1 year then there is no tax liability


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